A reserve money is used by the world’s people to buy from and sell to one another. If a reserve money is produced by a nation’s politicians, this is both good and bad. It helps the nation’s people buy more products from other nations’ people. But it also helps the nation’s politicians borrow and spend more. When the nation’s politicians borrow and spend more, that forces the nation’s people to invest less and produce less. At the same time, that also forces the nation’s people to pay interest and pay back principal. (Although constitutionally they are required to push back against repaying any debts incurred … Continue reading
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